Thailand's spectacular beach destinations and high tourist visitation numbers have attracted many foreigners to invest in this popular country. However, in order to buy a house in Thailand, you need to be aware of certain important facts first.
Thai property laws are complicated and, by and large, unregulated as well. Investing in Thailand real estate without properly looking up the legalities first can lead to unfavorable results, however, if done with due diligence, property investment in Thailand can be an incredibly rewarding experience.
How Difficult Is It To Buy Property In Thailand?
It is important to mention that foreigners cannot buy Thailand property as such, but they can buy apartments and condominium units. They are only allowed a maximum of 40% of the condominium unit’s ownership. That said, a foreigner is legally allowed to purchase a Thailand house except for the land on which it is built. There are certain exceptions to this rule if the following criteria are met:
-If a foreigner buys Thailand real estate, a Thailand house's ownership can be registered and transferred separately from the land where the house in question has been built.
-The said transfer procedure should comply with the Thailand Civil and Commercial Code.
-The transfer should be documented in written form.
-The transfer needs to be registered with the Land Department's provincial office or branch.
If the owner puts up their house for sale in Thailand, then they, along with the buyer, must strictly comply with the Land Office's standard procedure otherwise, the property in question will still be legally owned by the developer or third party to whom the land belongs to. These are serious legalities that you must remember when you buy a house in Thailand.
Guidelines for Buying a House in Thailand
Finding a Suitable House in Thailand
The first step is obviously scouting for a good property in Thailand. It is important that you do some amount of research when you plan to invest in Thailand property.
You must take advice from reputed estate agents and registered Thai lawyers in this regard. It will save you from falling prey to costly litigation and will also give you an insight into various helpful deals and offers.
Setting up Your Own Thai Company
When foreigners buy a house in Thailand, they are not legally allowed to own it in their name. However, their Thai registered company can own it. You will find various business entities in Thailand, that can help form a Thai Limited Company.
Americans have to deal with the Thailand Amity Treaty and tax considerations as well. Depending on your requirements, you may need a Thai Work Permit as well.
Carry out A Proper Diligence Check
When you are ready to buy a house in Thailand you must carry out a title search on the concerned property as recorded at the Land Department first.
One of the most important aspects of this search is the necessary diligence checks. You must ascertain if the seller truly owns the land legally or holds any outstanding mortgages, debts, or leases on the property which have not yet been cleared. If you are good with keywords, your title search should also tell you whether the property in question obeys the zoning and environmental regulations or not.
Hiring a Thai Property Lawyer
Foreigners are often, understandably, not well-acquainted with the finer details of the Thai legal system. Preferably, you should hire a lawyer whose area of specialization is foreign investment. He or she should carefully examine and approve every deposit you carry out and every contract you sign.
Find the Right Developer
If you want to buy a house in Thailand, you should look for developers who offer end-to-end services, from the initial purchase to management and rental management services. As an investor, you will rarely have the time to take care of your house or entertain visitors there especially if you live at a distance.
You should also give preference to developers who value timely delivery and build quality. If your developer delivers the construction later than promised, you will have to suffer from late rental income.
An excellent example of the right kind of developer is Skhai. With their virtues of global standards and local expertise, they offer incredible residences. Moreover, they will earn you great short-term rentals and have a lot of long-term capital value as well. Best of all, Skhai helps you buy property in a location best for you and makes sure that it is well constructed and designed.
With a noble vision of promoting eco-friendly business activities, Skhai gives utmost priority to their customers' needs and comforts.
With the help of Skhai, you can acquire beautifully designed and high-quality constructions of properties in stunning locations. If you choose to get your house constructed yourself, Skhai will help you with the same. Also, they will update you with precise reports along with weekly milestones.
Apart from this, Skhai also offers rental management services like property listing, expert pricing, guest-hosting, hotel-grade housekeeping, and reservations management. As a result, you will be able to have a reliable source of income with virtually no effort on your part.
We hope our guidelines help you successfully buy a house in Thailand and cherish it for countless years to come.